Johnny Ch Lok

Interesting Economic Questions And Explanations Johnny Ch Lok

What are economic main problems?Economic main problems many include how allocation of resources among competing wants, because human has unlimited wants, but resources are limited, e.g. land includes space, but location and natural resources are limited. So, land is needed to pay by rent, because human needs to live, but land resource is shortage to supply to build houses to live. So, it brings high or low rent for housing livers. Capital is the physical assets used in production, i.e. plant and equipment, labor is the skills, abilities, knowledge ( called human capital), and effort is used by people in production, labor is paid wages, entrepreneurial talent means risk taker, the economic agent who creates the business, entrepreneurial talent is paid profit. Due to above these economic resources are shortage, so different talent labor will be paid different high or low salary to help any businessmen to earn profit.